84R5809 JXC-D
 
  By: King of Parker H.B. No. 1331
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the treatment and recycling for beneficial use of
  certain waste arising out of or incidental to the drilling for or
  production of oil or gas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 122.001, Natural Resources Code, is
  amended by adding Subdivision (1-a) to read as follows:
               (1-a)  "Drill cuttings" means bits of rock or soil cut
  from a subsurface formation by a drill bit during the process of
  drilling an oil or gas well and lifted to the surface by means of the
  circulation of drilling mud.
         SECTION 2.  Section 122.002, Natural Resources Code, is
  amended to read as follows:
         Sec. 122.002.  OWNERSHIP OF CERTAIN OIL AND GAS WASTE
  TRANSFERRED FOR TREATMENT AND SUBSEQUENT BENEFICIAL USE.  (a)  This
  section applies only to oil and gas waste that consists of drill
  cuttings or fluid oil and gas waste.
         (b)  Unless otherwise expressly provided by a contract, bill
  of sale, or other legally binding document:
               (1)  when [fluid] oil and gas waste is transferred to a
  person who takes possession of that waste for the purpose of
  treating the waste for a subsequent beneficial use, the transferred
  material is considered to be the property of the person who takes
  possession of it for the purpose of treating the waste for
  subsequent beneficial use until the person transfers the waste or
  treated waste to another person for disposal or use; and
               (2)  when a person who takes possession of [fluid] oil
  and gas waste for the purpose of treating the waste for a subsequent
  beneficial use transfers possession of the treated product or any
  treatment byproduct to another person for the purpose of subsequent
  disposal or beneficial use, the transferred product or byproduct is
  considered to be the property of the person to whom the material is
  transferred.
         SECTION 3.  Chapter 122, Natural Resources Code, is amended
  by adding Section 122.0025 to read as follows:
         Sec. 122.0025.  RESPONSIBILITY IN TORT FOR DRILL CUTTINGS.  
  A person who generates drill cuttings and transfers the drill
  cuttings to another person with the contractual understanding that
  the drill cuttings will be treated and used in connection with road
  building or another beneficial use is not liable in tort for a
  consequence of the subsequent use of the drill cuttings by the
  person to whom the drill cuttings are transferred or by another
  person.
         SECTION 4.  The heading to Section 122.003, Natural
  Resources Code, is amended to read as follows:
         Sec. 122.003.  RESPONSIBILITY IN TORT FOR FLUID OIL AND GAS
  WASTE.
         SECTION 5.  This Act takes effect September 1, 2015.